SCM Dividend


Although SCM has a dividend of 0.11 with an ex-dividend date of Oct 30, you can sell covered calls on STELLUS CAPITAL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:50 AM ET):

Bid Ask Last Change Volume P/E Market Cap
12.82 12.87 12.84 -0.16 23K 8.2 0.2B

SCM Dividend-Like Income Using Covered Calls

With SCM at 12.84, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 0.39 0.1
5% 0.64 0.2
10% 1.28 0.4

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.UVXY dividend
2.EWZ dividend 7.FXI dividend   2.SKX dividend
3.EEM dividend 8.VXX dividend   3.CGC dividend
4.PBR dividend 9.IWM dividend   4.TLRY dividend
5.QQQ dividend 10.BAC dividend   5.SNAP dividend

Want more examples? SCL Dividend | SCO Dividend